Explain and apply the theory of demand and supply to determine market equilibrium and express in diagrammatic forms.

Refer to the diagram below showing the market for electric vehicle charging stations in a metropolitan region. If the government simultaneously introduces a $5{,}000 subsidy per charging station to suppliers and consumer awareness campaigns increase demand, but the subsidy effect on supply is twice the magnitude of the demand shift, what will be the outcome on equilibrium price \( (P^*) \) and equilibrium quantity \( (Q^*) \)?

Refer to the diagram below showing the market for lithium-ion batteries. Which statement correctly explains the market outcome at P₁?

In the market for fresh strawberries, consumer incomes rise by 8% while production costs for growers fall by 12%. Explain the likely effect on the equilibrium price of strawberries.